Sustainable Housing in Mexico
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SUSTAINABLE HOUSING IN MEXICO 1 EXECUTIVE SUMMARY 2 I. MEXICAN HOUSING 3 II. SUSTAINABLE HOUSING: A CONCEPT ADOPTED BY THE NATIONAL HOUSING COMMISSION IN MEXICO 3 III. THE FEDERAL GOVERNMENT’S PUBLIC HOUSING POLICY 3 1. Improve public and private management on behalf of sustainable housing 4 2. Objectives of the 2008–2012 National Housing Program: a) Increase the coverage of financing for housing offered 5 to the population, particularly for low- income families 5 b) Promote sustainable housing development. 10 5 c) Consolidate the national housing system through improvements in public management 8 d) Consolidate a Federal Government support policy that helps the low-income population to obtain financing for housing and promotes sustainable housing development 6 IV. SUSTAINABLE HOUSING 7 V. CONCEPTS OF SUSTAINABLE HOUSING IN MEXICO TABLE OF CONTENTS 7 1. The Green Mortgage: A product of the Institute of the National Housing Fund for Workers (INFONAVIT) 8 a) Green Mortgage (HV) 8 b) Objectives 8 c) Benefits of the HV 8 d) Eco-technologies 9 e) Bio-climate regions and eco-technologies 10 f) E stimated savings per family 10 g) INFONAVIT 2011 11 h) Incorporation of Eco-technologies in the HV 11 i) Green Mortgage 2011 Objectives 11 j) Results 12 k) International Recognition 13 2. “This Is Your House” Subsidy 13 a) Objectives 13 b) Characteristics of the Basic Package for the Subsidy 13 c) CONAVI Requirements 14 d) Notes 14 3. Sustainable Integrated Urban Developments (Desarrollos Urbanos Integrales Sustentables, DUIS) 14 a) Background 14 b) Federal Government Encouragement 14 c) Courses of Action 15 d) Institutionalization: Inter-Secretarial Housing Commission 16 e) Integrated Sustainable Urban Developments 16 f) Types of DUIS 16 g) Sponsors of DUIS 16 h) Integration and Coordination Scheme for the Institutionalization of GPDUIS TABLE OF CONTENTS 17 i) Institutionalization at Civil Society Level: DUIS Consultative Committee 17 j) Projects – Current Status 18 4. Challenges of Sustainable Housing in Mexico 18 VI. INITIATIVES TO STRENGTHEN SUSTAINABLE HOUSING IN MEXICO 18 1. Seeking Climate Finance for Scaling Up 20 2. PPP for Sustainable Housing and Environment 20 a) Mission 20 b) Vision 20 c) Who form the Association? 20 d) Key Actions 21 VII. SOURCES 22 VIII. GLOSARIO 22 1. Terms 23 2. Institutions EXECUTIVE SUMMARY Green Mortgage (Hipoteca Verde, HV) Relevant facts Chart for obtaining Green Mortgage • By the third decade of this century, there will be 40 million homes in Mexico, and an average of 0.6 million will be constructed and financed each year.. • In the next 30 years, 35 percent more houses than those currently existing in Mexico will be constructed. • Urban areas consume nearly 50 percent of the country’s energy resources. • To date, nearly 500,000 sustainable houses have been built in Mexico. Each of them has mitigated 1 to 1.5 tons of CO2e. • HMore than 243,626 subsidies have been given under the “Esta es tu casa” program • Five Sustainable Integrated Urban Developments (Desarrollos Urbanos Integrales Sustentables, DUIS) have been certified and 18 are currently being analized (which represent more than 1 The economic benefits that the HV generates for families are directly related to millon 250 thousand new houses in 15 Mexican states). the technology package that they select. Depending on the income evaluated by the minimum wage (times minimum wage, TMW, or veces salario mínimo, Description VSM), a range of minimum savings is established, which ensures minimum savings for a family’s economy. Since 2009, the Mexican Federal Government has promoted the development of a sustainable housing model. The precursor of this initiative was the There is a federal government subsidy called “This is Your House”: it is an extra Green Mortgage (Hipoteca Verde, HV) program of the Institute of the amount added to the credit granted by INFONAVIT. It allows low-income National Housing Fund for Workers (Instituto Nacional del Fondo para la families (<2.6 TMW) to purchase a sustainable house. Vivienda de los Trabajadores, INFONAVIT), an institute in which Mexican workers save a portion of their salaries and employers make another contribution in order to generate creditworthiness for the purchase of a Sustainable Integrated Urban home. The HV consists of equipping the home with a technology package Development (DUIS) for the sustainable use of water and for energy saving (electricity and gas), making it possible to achieve a 48 percent savings in electricity and gas This addresses the concept of sustainable housing under a broader scope consumption. Electricity, water and gas bills are reduced, which mean an that encompasses the neighborhood, the city and the region and takes the average savings of 261 MXN for residents of affordable housing. In the case following aspects into consideration: of carbon dioxide (CO2e) emissions, it is estimated that each home saves 1 to 1.5 tons per year. In addition, the “This is Your House” (“Ésta es tu • Efficient and sustainable urban infrastructure Casa”) program, through federal subsidies, has helped low-income families (< 2.6 TMW) that are not eligible for an HV credit to afford a sustainable • Integration of industry and commerce to allow employment house. With these instruments, the aim is to strengthen the Government’s creation in the region commitment to offer the alternative of sustainable housing to the country’s lowest income sector. • Strategies to facilitate mobility and accessibility • Provision of services: education, health, social activities • Territorial coordination • Environmental protection and rational use of natural resources 1 Operating Scheme NO Yes Initiatives to Strengthen Sustainable credits are INFONAVIT and the Housing Fund of the Institute of Social Housing in Mexico Security and Services for Government Workers (Fondo de la Vivienda del Instituto de Seguridad and Servicios Sociales de los Trabajadores del In order to strengthen the efforts that have been made on this subject, work Estado, FOVISSSTE), which contribute 80% of housing credit and has been conducted on the design and implementation of mechanisms therefore contribute toward increasing the availability of homes for stemming from relevant international agreements on climate change. The low-income families. mechanisms that are planned to be promoted are: Clean Development Mechanism (CDM), and Nationally Appropriate Mitigation Actions The housing finance industry in our country offers consumers long-term (Acciones de Mitigación Nacionalmente Adecuadas, NAMAs) for Housing mortgages for the purchase of a home. These credits typically have terms and Urban Development. of 15 to 30 years. The type and price of the products financed depends mainly on sources of financing and the individual’s creditworthiness. International support for the achievement of the objectives proposed by these initiatives has included the participation of the World Bank and the Mortgages for low-income housing have been tied to the specific income German Federal Ministry for the Environment, Nature Conservation and of the mortgagee. For example, loans issued by INFONAVIT foresee that Nuclear Safety (Bundesministerium für Umwelt, Naturschutz und mortgagees may lose their jobs—their source of payment—and thus Reaktorsicherheit, BMU), through the German Agency for International contain grace periods of slightly more than one year. Cooperation (GIZ, as per its acronym in German), which have contributed economic and human resources to strengthen the efforts and commitments Mexico has experienced significant growth in its efforts to construct expressed by Mexico on this subject in order to achieve favorable results low-income housing, and the credits that have been granted in recent years in the implementation of the initiatives and a significant reduction in GHG. have greatly exceeded those of previous years. This industry is expected to continue growing exponentially in the coming years. “Housing, archi- 1 tecture, urban development, financing and markets are now the variables I. MEXICAN HOUSING of an equation that will define the future of our cities.”Sara Topelson Fridman. Deputy Secretary of Urban Development and Land Use Housing is a basic need. It provides safety, peace of mind and stability to an Planning. Secretariat of Social Development. Federal Government. individual, and for some it is a key element in fighting poverty. The challenge will be to consolidate the industry and confirm achievements In Mexico, the Federal Government is in charge of implementing and efforts. The Government of President Felipe Calderón has granted most of the support (soft credits) granted to the population for home more loans and subsidies for housing each year than all previous purchases, through contributions by employers and employees in propor- governments: more than 1 million on average, with approximately 6 tion to the work performed. The key institutions that grant these supports/ million expected in 2012. 1 For more information, see: Article: “La Vivienda en México” (“Housing in Mexico”). Patricio de la Fuente. Resumen V Informe de Gobierno (Summary of Fifth Governance Report). President Felipe Calderón Hinojosa. Apartado Vivienda (Housing Section). 2 Housing cannot be viewed as a passing phase or as a sector that can be The second challlenge will be to resolve urban development issues. New improvised year after year. Instead, it is a trigger of economic growth urbanizations must be planned, infrastructure and public transportation and social justice